Despite revenue decline, profits rose over 15%

Zenith National Insurance reported a decline in total revenue to $156.888m in the third quarter of 2009, compared to $166.952m in the same period last year, despite of rise in profits.

For the quarter ended September 30, 2009, the company posted a net income of $19.2m, or $0.51 per share, compared to $16.6m, or $0.44 per share in the same quarter of 2008, an increase of more than 15% . Net income includes net realized gains on investments after tax of $13.4m or $0.35 per share.

Net income in the first nine months of 2009 is $23.6m, or $0.62 per share, compared to $86.9m, or $2.32 per share in the same period last year, and revenue has declined to $444.578m, compared to $528.072m in the previous period.

Stanley Zax, chairman and president, said: “Book value per share plus stockholder dividends increased approximately 5% in the third quarter 2009 primarily because of the improvement in the market value of our investments. When the economy improves, we are optimistic that our excellent financial condition will provide the basis upon which we can find opportunities to grow our business.”